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India By State - Nagaland - Business Opportunities

Business Opportunities



The state provides institutional support through various central and state government agencies viz., North East Council, Ministry of Development of North Eastern Region and Nagaland Industrial Development Council.

The state offers excellent policy and fiscal incentives for agro-and forest-based industries, horticulture, food processing, mining, tourism and the handlooms and handicrafts sector. Nagaland has a high literacy rate of 67.1 per cent.

More than 80 per cent of the population speaks English, which is the official language of the state.

The state has a capacity of over 24,000 seats in technical and medical education institutes. Nagaland's agro-climatic conditions favour agriculture, horticulture and forestry, offering immense potential in these areas. The state has considerable resources of natural minerals, petroleum and hydro power. Transport and communication connectivity is good. Industrial centres and SEZs are being developed to enhance the marketability of products.

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Key Industries


Nagaland's bamboo growing stock, covering 448,000 ha of land and comprising 22 species, is about 5 per cent of the total stock in the country. Nagaland Bamboo Development Agency is the nodal office that coordinates with other offices for all bamboo-related research, development and business applications.

Nagaland promotes bamboo processing as an enterprise, covering various applications such as food-based, medicinal usage, handicraft, art, tiles and flooring.

The state has technology tie-ups with several national and international agencies in the area of bamboo research and application.


Nagaland has a rich wealth of flora and fauna.

Several varieties of orchids are available in the state, offering significant investment potential.

Exotic and hybrid varieties of flowers are also being developed in Nagaland; the state is also home to the tallest Rhododendron tree in the world.

Agriculture and Horticulture and food processing

Nagaland has a suitable climate for agricultural and horticultural produce.

It supports multiple crops viz., rice, maize, millet, gram, mustard, bean, sugarcane, rubber, tea, banana, pineapple, orange, jackfruit, pear, plum, passion fruit, litchi, mango, lemon, sweet lime, potato, sweet potato, tapioca, tomato, pea, chilly, ginger, garlic, cardamom, etc.

Jhum cultivation (or shifting cultivation) is widely practised in Nagaland, however, crop yields are low under such cultivation. There is potential for increasing capacity utilisation by adopting modern techniques.

The food and meat processing sector also provides immense potential for investment in Nagaland. Mini project reports for various food processing products are made available by the Department of Industries.

Hydro Power

It is estimated that Nagaland has a potential for 1,000 MW of hydro-power generation, while the installed capacity is only 28.7 MW. This provides an immense potential; investments are being invited by the State Government in this area.

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Salubrious climate, green hills, criss-crossing rivers, interspersed lakes, vibrant culture, colourful handicrafts and weavings, and numerous festivals make Nagaland a tourist's paradise.

The number of foreign tourists visiting the state increased by 14 per cent between the years 2005 and 2008.

Creation of tourist complexes, eco-tourism, adventure tourism, ethnic culture tourism, health farms, hotels, convention centres, tourist travel services, etc., are various avenues for investment in the sector.

IT Sector

Nagaland's IT policy aims to increase the use of IT in the industrial and government sectors within 10 years, starting in 2004.

With a high literacy rate, affordable cost, strong English-speaking population, improved telecommunications connectivity and favourable climate, Nagaland is well poised to serve the IT industry.

The IT policy also provides various incentives and concessions for investments in IT.

Sericulture, Handloom and Handicrafts

Mulberry, muga, eri, oak-tussar, and silk are widely cultivated in Nagaland. The state has invested US$ 7.31 million to promote cultivation of silk. The Sericulture Department of Nagaland is promoting exports of silk from Nagaland.

The varied ethnic handloom and crafts of Nagaland have a ready market in India and abroad. Bamboo crafts and handloom are being promoted as a part of the bamboo policy of the state.

The state has a tie-up with NIFT to promote and provide sustained market for ethnic handloom. With the modern weaving-equipment being popularised in Nagaland, the handloom sector is poised for growth in production and trade.

Minerals and Petrochemicals

Nagaland has vast, untapped natural resource reserves of limestone and marble (1,000 million tonnes), petroleum and natural gas (600 million tonnes), coal (50 million tonnes) and substantial reserves of slate sandstones, basalt, chert, dunite, gabbro, granodiorite, serpentine, spilitepyroxenite, quartzite. Explorations are being carried out by Geology & Mining Department, Geological Survey of India, Oil and Natural Gas Corporation Limited (ONGC), Atomic Minerals Division and Central Ground Water Board.

This presents a huge untapped potential in the minerals and petrochemicals industries.

Medicinal Plants

Nagaland has rich flora and fauna, which support various medicinal plants.

The state has identified specific medicinal plants which could be cultivated and processed, such as: conitum ferox, ginseng, lemon grass, aconitum heterophyllum.

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More Information on Nagaland

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